STARKVILLE – A $45 million redevelopment project planned for an old stormwater detention area off Highway 12 is one step closer to fruition following Tuesday’s board of aldermen meeting.
The board unanimously approved a tax increment financing agreement to support the Sandcreek Redevelopment Project, a joint venture between Ridgeland-based Desai Companies and Hattiesburg-based York Developments. The plan includes a 100-room Home2Suites hotel and a 504-bed student housing complex on the 21.6-acre site off Highway 12 and Pat Station Road, behind Walk-On’s and La Quinta Inn.
Mayor Lynn Spruill said the project addresses the city’s need for additional hotel rooms.
“I am very excited,” Spruill told The Dispatch following the Tuesday meeting at City Hall. “We need a hotel, and that’s the big piece of this that’s so compelling about supporting the TIF is the hotel. … We’re short 300 rooms. … So I’m very excited about getting that done.”
Spruill noted that the city will soon lose another 85 hotel rooms when Russell Inn and Suites, located on Russell Street, is demolished to make way for the planned 122-room Hotel Madelon.
The TIF authorizes up to $3.35 million in bonds, split evenly between the city and county, to fund infrastructure improvements needed for the project, including a 1,367-foot access road to the site and upgrades to Pat Station Road.
Under the agreement, developers must complete construction and begin operations before any bonds are issued. After that, the city and county will repay the bonds for up to 15 years using new property tax revenue generated by the development.
The public funds would only be used to reimburse infrastructure-related costs, not the construction of the buildings themselves.
There is no set timeline for when public infrastructure work will begin. However, Desai Companies CEO Sunny Desai aims to start hotel construction in the first quarter of 2026, Attorney Christiana Sugg told The Dispatch.
Sugg said construction for the student housing development is expected to begin after the hotel is finished.
Developers estimate the project will boost annual property tax revenue by $237,473 for the city, $384,572 for the county and $462,961 for the Starkville-Oktibbeha Consolidated School District. Construction is projected to generate about 75 jobs, while completion of the site is expected to create about 33 permanent positions and generate about $4.2 million in annual sales.
The site currently produces minimal tax revenue, with about $1,619 in city and $2,788 in county property taxes collections reported last year.
Oktibbeha County supervisors approved the TIF agreement 4-1 during the board’s regular monthly meeting Nov. 3, with District 1 Supervisor Ben Carver voting against.
Other business
In other business, the board:
■ set its second public hearing for 5:30 p.m. Dec. 2 at City Hall to add an amendment to the city’s aggressive panhandling ordinance to limit solicitation to daylight hours; and
■ unanimously approved an ordinance to curb predatory towing practices within city limits. The measure caps towing fees at $250, limits storage fees to $45 per day, requires companies to maintain standard hours for releasing vehicles and requires signage in private parking lots where towing is enforced.
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You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 32 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
